ana holdings inc. · -air transportation as the group’s core business, continues to expand...

©ANAHD2015 1

ANA HOLDINGS INC.・Overview of Long-term Strategic Vision・Financial Results FY2014 Third Quarter

February 2, 2015

Shinichiro ItoPresident and CEO

Kiyoshi TonomotoSenior Executive Vice President

and CFO

©ANAHD2015 2

Contents

【Part 1】Ⅰ.Overview of Long-term Strategic VisionFY2014-16 Corporate Strategy

Current Progress of FY2014 PlanUpdated Measures Outlined for

FY2015-16 in Current Corporate StrategyLong-term Strategic Vision

Environmental Awareness and Position of Long-term Strategic Vision

Future Path of Business PortfolioBusiness Scale and ASK on

Air Transportation BusinessApproach to International Network ExpansionAdditional Orders of Aircraft and Future PlanLong-Term Value Creation Target

P. 4P. 5

P. 6

P. 7P. 8

P. 9P. 10P. 11

【Part 2】Ⅱ.FY2014 Financial Results Third QuarterHighlights of FY2014 Third QuarterConsolidated Financial Summary

Income StatementsConsolidated Financial PositionConsolidated Statements of Cash FlowResults by Segment

P. 14

P. 15P. 16P. 17P. 18

Air Transportation BusinessOperating Revenues and ExpensesChanges in Operating IncomeDomestic Passenger OperationsInternational Passenger OperationsDomestic Cargo OperationsInternational Cargo OperationsLCC OperationsResults by SegmentStatus of Fuel and Currency HedgingProvisional Calculation for

Change Factors in Profit Plan

P. 19P. 20P. 21-22P. 23-25P. 27P. 29-30P. 31P. 32P. 33P. 34

P.36

P.37

P.38

Composition of International Passenger Results by Destination

Composition of International Cargo Results by Destination

Aircraft in Service

Ⅲ. Supplemental Reference

©ANAHD2015

【Part 1】

3

１．Current Progress of FY2014 Plan

２．Updated Measures Outline for FY2015-16 in Current Corporate Strategy

３．Long-term Strategic Vision

Ⅰ．Overview of Long-term Strategic Vision

©ANAHD2015

Verified appropriateness of current strategiesVerified appropriateness of current strategies by consistent track records by consistent track records based on air transportation businessbased on air transportation business

1. Current Progress of FY2014 Plan1. Current Progress of FY2014 Plan

4

Domestic Passenger BusinessDomestic Passenger Business

International Passenger BusinessInternational Passenger Business

Cost restructuring in progress as planned- 1-3Q cumulative results : ¥24.0Bn reductions

Flexible currency hedging- Improved probability of profit target

FY2014FY2014--16 Corporate Strategy16 Corporate Strategy

11--3Q3Q Diff. Diff. vsvsFY13/1FY13/1--3Q3Q YoYYoY

Op. RevenuesOp. Revenues 1,297.2 1,297.2 + 107.9 + 9.1%

Air Transportation 1,124.2 + 90.3 + 8.7%

Op. IncomeOp. Income 89.289.2 + 20.2 + 29.3%

Air Transportation 78.2 + 15.6 + 25.0%

Op. Income Margin (%)Op. Income Margin (%) 6.96.9 + 1.1 -Recurring IncomeRecurring Income 74.574.5 + 20.9 + 39.0%

Net IncomeNet Income 52.352.3 + 19.0 + 57.2%

EBITDAEBITDA 186.7186.7 + 16.4 + 9.6%

Recorded the highest operating revenues ever for the cumulative 1-3Q

Operating income recorded approximately 30% increase year-on-year

Recorded the highest operating revenues ever Recorded the highest operating revenues ever for the cumulative 1for the cumulative 1--3Q3Q

Operating income recorded approximately 30% Operating income recorded approximately 30% increase yearincrease year--onon--yearyear

《 Financial Results of FY2014 Third Quarter (Consolidated) 》

Improved Improved toptop--linelinegrowthgrowth

2

0

-2

ASKASKASK

+1.6%+1.6%+1.0%+1.0%

-- 1.7%1.7% RPKRPKRPK RevenuesRevenuesRevenues

(%)

Achieved increase in revenues while controlling capacity

ASKASKASK

+20.4%+20.4% +19.1%+19.1%+17.3%+17.3%

RPKRPKRPK RevenuesRevenuesRevenues

20

10

0

(%)

Captured significant demand in line withASK expansion

(¥ Billion)

Achieved optimal cost management practicesAchieved optimal cost management practices

《 1-3Q Cumulative Results 》

©ANAHD2015

Continue existing corporate strategies, revising crude oil and eContinue existing corporate strategies, revising crude oil and exchange rate assumptionsxchange rate assumptions

2.Updated Measures Outlined for FY2015-16 in Current Corporate Strategy 2.Updated Measures Outlined for FY2015-16 in Current Corporate Strategy

◆ Yen depreciation◆ Decline in crude oil price

◆ Yen depreciation◆ Decline in crude oil price

5

Market AssumptionsCrude oil priceExchange Rate

Market AssumptionsMarket AssumptionsCrude oil priceExchange Rate

Cost Restructuring

Initiatives

Cost Cost Restructuring Restructuring

InitiativesInitiatives

◆ Examine items for reductions【FY15】 ¥30.0Bn【FY16】 ¥20.0Bn

◆ Examine items for reductions【FY15】 ¥30.0Bn【FY16】 ¥20.0Bn

Specified measures and revised annual saving targets【FY15】 ¥25.0Bn ¥5.0Bn reductions rescheduled to FY16【FY16】 ¥25.0Bn Reach to initial plan in total

Specified measures and revised annual saving targets【FY15】 ¥25.0Bn ¥5.0Bn reductions rescheduled to FY16【FY16】 ¥25.0Bn Reach to initial plan in total

Revised market assumptions (Detail P.34)【Revenues】 - Revenues in foreign currencies (Positive)

- Fuel surcharge revenues (Negative)【Expenses】 - Expenses in foreign currencies (Negative)

- Fuel expenses (Positive)

Revised market assumptions (Detail P.34)【Revenues】 - Revenues in foreign currencies (Positive)

- Fuel surcharge revenues (Negative)【Expenses】 - Expenses in foreign currencies (Negative)

- Fuel expenses (Positive)

Reviewed itemsReviewed itemsReviewed itemsStatus after formulation of corporate strategy

Status after formulation Status after formulation of corporate strategyof corporate strategy

6 years in total- ¥1.5

6 years in total6 years in total-- ¥¥1.51.5

（unit：¥）

(Source) “FY2014-16 Corporate Strategy”disclosed in Feb.2014

FY2011-14 FY2015-16

FY11（Initial Plan）

FY14（Forecast）

FY16（Plan）

10.0210.0210.02 - 0.9-- 0.90.9

9.069.069.06 - 0.6-- 0.60.6

8.468.468.46

FY15-16Basic Policy

FY15FY15--1616Basic PolicyBasic Policy

【FY11-14】・Reductions by individual organization・Top-down approach

【FY11-14】・Reductions by individual organization・Top-down approach

【FY15-16】・Reductions by cross-functional efforts・Bottom-up approach

【FY15-16】・Reductions by cross-functional efforts・Bottom-up approach

Air transportation businessUnit Cost Transition( excluding fuel expense )

Air transportation businessAir transportation businessUnit Cost TransitionUnit Cost Transition( excluding fuel expense )

FY2014FY2014--16 Corporate Strategy16 Corporate Strategy

©ANAHD2015 6

3. Environmental Awareness and Position of Long-term Strategic Vision

Mid/longMid/long--termterm business opportunities lead to our further growth under the upcobusiness opportunities lead to our further growth under the upcoming favorable environmentming favorable environment

Long-term Strategic Vision

Long-term Strategic VisionLong-term Strategic Vision

- Future path of business portfolio - Strategies by business segments-- Future path of business portfolio Future path of business portfolio -- Strategies by business segmentsStrategies by business segments

・Assumed business environment・Long-term growth opportunity・Business scale and “Value Creation Targets”・Initiatives for each business segments

・・Assumed business environmentAssumed business environment・・LongLong--term growth opportunityterm growth opportunity・・Business scale and Business scale and ““Value Creation TargetsValue Creation Targets””・・Initiatives for each business segmentsInitiatives for each business segments

Long-termConcept

LongLong--termtermConceptConcept

10 Years afterward of ANA Group10 Years afterward of ANA Group10 Years afterward of ANA Group

Inbound Demand

Inbound Demand

AirlineBusinessAirline

Business

Increase of foreign visitorsIncrease of foreign visitorsIncrease of foreign visitors13.4 millions（CY2014 results）

13.4 millions13.4 millions（CY2014 results）

Metropolitan Airports / slotsMetropolitan

Airports / slotsHaneda

( Daytime for Int’l op. )+40 Flights/day

HanedaHaneda( Daytime for Int( Daytime for Int’’l op. )l op. )

+40 Flights/day+40 Flights/dayNarita

+40 Flights/dayNaritaNarita

+40 Flights/day+40 Flights/day

New entry and frequency increase of foreign airlines / New entry and expansion of domestic & foreign LCCsNew entry and frequency increase of foreign airlines / New entryNew entry and frequency increase of foreign airlines / New entry and expansion of domestic & foreign and expansion of domestic & foreign LCCsLCCs

20.0 millions（CY2020 target）

20.0 millions20.0 millions（CY2020 target）

30.0 millions（CY2030 target）

30.0 millions30.0 millions（CY2030 target）

Possibility of additional expansion

Possibility of Possibility of additional expansionadditional expansion

Tokyo Olympics & ParalympicsTokyo Olympics & ParalympicsTokyo Olympics & Paralympics

Matured domestic market / Growth in international demandMatured domestic market / Growth in international demandMatured domestic market / Growth in international demand

Improvement ofairport access

Improvement ofImprovement ofairport accessairport access

MacroEnvironment

MacroEnvironment

AssumedEnvironmentAssumedAssumed

EnvironmentEnvironment FY2017 and beyondFY2017 and beyondFY2017 and beyondFY2014-16FY2014FY2014--1616

Growth of Asian market / Development of FTA・EPAGrowth of Asian market / Development of FTAGrowth of Asian market / Development of FTA・・EPAEPA

Lead to mid/longLead to mid/long--term business opportunities of term business opportunities of ANA Group for further growthANA Group for further growth

©ANAHD2015

Enhance revenue domains based on sustainable growth of Enhance revenue domains based on sustainable growth of air transportation business and expansion of nonair transportation business and expansion of non--air businessair business

FY2025 (Vision)¥¥2,500.02,500.0Bn

Pursue for consolidated revenues of 2.5 trillion yen in 10 years - Air transportation as the Group’s core business, continues to expand international business as a growth driver- Growth of non-air business, as well as air transportation, will make achievement to our profit

Pursue for consolidated revenues of 2.5 trillion yen2.5 trillion yen in 10 years - Air transportationAir transportation as the Group’s core business, continues to expand international business as a growth driver- Growth of nonnon--air businessair business, as well as air transportation, will make achievement to our profit

・Non-air business include “Airline Related”, ”Trade and Retail”, “Travel Services” and “Others.”・Op. revenues and business component ratio are after eliminations.・Op. revenues of LCC for FY2025 is calculated as gross op. revenues within ANA Group.

7

3. Future Path of Business Portfolio3. Future Path of Business Portfolio

Current StatusCurrent Status

10 years After10 years After

Dom. Int’l Cargo LCC Others

Air TransportationNon-air

x1.3x1.3 x1.4x1.4





83%83%

17%17%

8989%%

1111%%Approx.Approx.1515%%

NonNon--air businessair business

Approx.Approx.8585%%Air Transportation businessAir Transportation business

10 years Before10 years Before

Sales VolumeSales Sales

VolumeVolume

500.0

(¥ Billion)

FY2015 (Plan)¥¥1,780.01,780.0Bn

FY2005 (Results)¥¥1,370.01,370.0Bn

0


©ANAHD2015

Beginning of FY15

8

Dom. Passenger BusinessDom. Passenger BusinessDom. Passenger Business

2010 20252015 2020

Demand forecast

Int’l Passenger BusinessIntInt’’l Passenger Businessl Passenger Business

2010 20252015 2020

ASK （Beginning of FY15=100）

3. Business Scale and ASK on Air Transportation Business3. Business Scale and ASK on Air Transportation Business

Demand of full-service carrier LCC latent demand(Based on from/to JPN including other carriersSource : Ministry of Land, Infrastructure, Transport and Tourism / Estimation of ANAHD.)

CAGR : - 2 to -1%

CAGR : + 2 to + 3%

LCC Share approx.30%

LCC Share approx.30%Demand Forecast

Approx.Approx.55

Vision for FY25

Approx.Approx. 55

ANA Brand LCC Brand

100

100

Approx.95Approx.Approx.9595

Approx.95Approx.Approx.9595

LCC BrandLCC BrandLCC Brand

LCC BrandLCC BrandLCC Brand

ANA BrandANA BrandANA Brand

ANA BrandANA BrandANA Brand

Vision for FY25

Beginning of FY15

ASK （Beginning of FY15=100）

Expand international and LCC business for further improvement inExpand international and LCC business for further improvement in earningsearningswhile maintain profitability on domestic business while maintain profitability on domestic business

【ANA Brand】 Continue to optimize demand/supply on domestic business and expand international business as a growth driver【LCC Brand】 Generate new demand and enhance inbound travelers by expanding routes for both domestic and international businesses【【ANA BrandANA Brand】】 Continue to optimize demand/supply on domestic business and expand international business as a growth driver【【LCC BrandLCC Brand】】 Generate new demand and enhance inbound travelers by expanding routes for both domestic and international businesses

200


©ANAHD2015

３．Approach to International Network Expansion３．Approach to International Network Expansion

9

Intra AsiaIntra Asia--PacificPacific

1,2721,272

4,0634,063

2013 2033

AsiaAsia--PacificPacific－－EuropeEurope

342342820820

2013 2033

CAGRCAGR：：6.0%6.0%


AsiaAsia--PacificPacific－－North AmericaNorth America

309309 635635

2013 2033


Next phase of achieving additional international network expansiNext phase of achieving additional international network expansion under multion under multi--brandbrand

【【Visions for Network Expansion and Worldwide Air Traffic ForecastVisions for Network Expansion and Worldwide Air Traffic Forecast】】

Western Europe

Western Western EuropeEurope

Eastern Europe/Russia

Eastern Europe/Eastern Europe/RussiaRussia

China/South Korea/Taiwan

China/South Korea/China/South Korea/TaiwanTaiwan

Southeastern Asia

Southeastern Southeastern AsiaAsia

Middle East/Africa

Middle East/Middle East/AfricaAfrica

OceaniaOceaniaOceania

North America/CanadaNorth America/CanadaNorth America/Canada

Latin AmericaLatin AmericaLatin America

HawaiiHawaiiHawaii

Regions currently in service

Regions for future considerationRegions for future considerationLCC BrandLCC BrandLCC BrandANA BrandANA BrandANA Brand

【Source】 ”Worldwide Market Forecast 2014-2033”,Japan Aircraft Development Corporation（Numbers are RPK, Unit：Billion Passenger Km.）


©ANAHD2015

LCCLCC1010to15%15%

LCCLCC8%8%

CargoCargoapprox.approx. 5%5%

IntInt’’ll3030to35%35%

CargoCargo4%4%

IntInt’’ll30%30%

DomesticDomestic58%58%

DomesticDomestic4545to50%50%

3. Additional Orders of Aircraft and Future Plan3. Additional Orders of Aircraft and Future Plan

Implement fleet strategy to support longImplement fleet strategy to support long--term growth for air transportation businessterm growth for air transportation business

10

Flexible deployment of aircraft including

international business

Flexible deployment of Flexible deployment of aircraft including aircraft including

international businessinternational business

Beginning of FY15（Forecast）

End of FY20（Vision）

Wide-BodyWideWide--BodyBody

Wide-BodyWideWide--BodyBodyANA approx.230LCC approx. 20

ANA approx.265LCC approx. 40

Mid-bodyMidMid--bodybody

IntroducingIntroducingIntroducingRetirementRetirementRetirement

Narrow-bodyNarrowNarrow--bodybody

RegionalRegionalRegional

Mid-bodyMidMid--bodybody

Narrow-bodyNarrowNarrow--bodybody

RegionalRegionalRegional

Stable Aircraft procurement as resources for mid/long-term growth and replacement

Stable Aircraft procurement as resources for mid/long-term growth and replacement

※ “LCC” is “LCC brand” in total.

Composition of aircraft useBeginning FY15 (Forecast)

Composition of aircraft useBeginning FY15 (Forecast)

Net increaseapprox. 55

Net increaseNet increaseapprox. approx. 5555

Improve profitability on domestic business by enhancing

“optimization of demand/supply”

Improve profitability on domestic Improve profitability on domestic business by enhancing business by enhancing

““optimization of demand/supplyoptimization of demand/supply””

70 aircraftFilling on Mar.27, 201470 70 aircraftaircraft

Filling on Mar.27, 2014

15 aircraftFilling on Jan.30, 201515 15 aircraftaircraft

Filling on Jan.30, 2015

Approx. Approx. 250250

Approx. Approx. 305305

Composition of aircraft useEnd of FY20 (Vision)

Composition of aircraft useEnd of FY20 (Vision)

For additional expansionof metropolitan airports

For additional expansionFor additional expansionof metropolitan airportsof metropolitan airports

Implement fleet strategy Implement fleet strategy for longfor long--term growth term growth

Target and Effect of Aircraft ProcurementTarget and Effect of Aircraft Procurement

B777 ･ B787 ･ B737NGA320/A321neo ･ MRJ

100%

50%

0%Beginning of FY15（Forecast）

End of FY20（Vision）

Composition ofComposition ofFuel Efficient EquipmentFuel Efficient Equipment

Approx.Approx.5555%%

7575 to8080%%


©ANAHD2015 11

燃油・為替3. Long-Term Value Creation Target

4.6%

4.0%

EPS（¥）

ROE・ROA(%)


10.0

85.0110.0～

130.0～

50.0

100.0

150.0

200.0

10

20

30

5

10

FY2014Forecast

FY2015Plan

FY2016Plan

◆

0 0

0

◆Op. Income:¥200.0Bn

◆ROA : 8%

ROE : 10%

FY2025 Vision(Target to be pursued)

EPS : ¥30

Develop growth strategy as a way to enhance management for value creation

FY2014-16 Corporate Strategy（FY2014 is based on earnings forecast）

Op. Income（¥Billion）


©ANAHD2015

Intentionally Blank

12

©ANAHD2015 13

Ⅱ. FY2014 Financial Results Third Quarter

【Part2】

©ANAHD2015

-400-200

0200400600800

1,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q

営業利益当期純利益 EBITDA

Highlights of FY2014 Third Quarter

2013年度 2014年度

14

100.080.060.040.020.00.0

-20.0-40.0

(¥Billion)

Op. Income Net Income EBITDA

FY2013 FY2014

Comparison of Financial Results FY14 1-3Q and FY13 1-4Q

Achieved significant earnings year-on-year comparison

【FY2014 1-3Q Cumulative Results (Consolidated)】 Op. Income ： ¥ 89.2Bn （ YoY ¥ +20.2Bn ） Net Income ： ¥ 52.3Bn （ YoY ¥ +19.0Bn ） EBITDA ： ¥ 186.7Bn （ YoY ¥ +16.4Bn ）

3rd Quarter（Oct-Dec） Op. Income ¥31.3Bn Net Income ¥16.5Bn EBITDA ¥63.9Bn

©ANAHD2015

Consolidated Financial Summary

Difference1-3Q/FY141-3Q/FY13

Operating Revenues 1,189.3 1,297.2 + 107.9 442.4 + 36.3

Operating Expenses 1,120.2 1,207.9 + 87.6 411.0 + 30.6

Operating Income 69.0 89.2 + 20.2 31.3 + 5.6

Op. Margin (%) 5.8 6.9 + 1.1 7.1 + 0.7

Non-Op. Gains/Losses - 15.3 - 14.7 + 0.6 - 4.8 - 0.8

Recurring Income 53.6 74.5 + 20.9 26.4 + 4.7

Extraordinary Gains/Losses 2.2 11.6 + 9.4 1.4 + 0.5

Net Income 33.3 52.3 + 19.0 16.5 + 3.3

Net Income Before Minority Interests 32.1 53.1 + 20.9 16.9 + 3.6

Other Comprehensive Income 23.2 2.6 - 20.5 - 18.8 - 42.1

Comprehensive Income 55.3 55.7 + 0.3 - 1.9 - 38.4

15

Difference3Q/FY14Income Statements

(¥Billion)Revenue of fuel which is resold to airlines outside the group is offset by its purchasing cost and the net amount is recorded as net revenue, effective from FY14 1Q. Related figures for FY13 have been also corrected by applying this new accounting change.

©ANAHD2015


Assets 2,173.6 2,316.7 + 143.1

Shareholders' Equity 746.0 796.4 + 50.3

Ratio of Shareholders‘ Equity (%) 34.3 34.4 + 0.1

Interest Bearing Debts 834.7 834.9 + 0.2

Debt/Equity Ratio (times) * 1.1 1.0 - 0.1

Net Interest Bearing Debts ** 461.6 459.6 - 1.9

16

DifferenceDec 31, 2014Mar 31, 2014Consolidated Financial Position

(¥Billion)

* D/E ratio when including off-balanced lease obligation of ¥101.1billion （¥121.0billion as of the end of March, 2014） is 1.2times（1.3times as of the end of March, 2014）.

** Net Interest Bearing Debts: Interest Bearing Debts - (Liquid Assets(Cash on Hand and in Banks＋Marketable Securities))

©ANAHD2015


Substantial Free Cash Flow(excluding periodic/negotiable deposits of more than 3 months) 71.5 15.0 - 56.5

EBITDA * 170.3 186.7 + 16.4

EBITDA Margin (％) 14.3 14.4 + 0.1

Cash Flow from Operating Activities 190.9 193.5 + 2.6

Cash Flow from Investing Activities - 145.6 - 222.0 - 76.3

Cash Flow from Financing Activities - 92.0 - 15.0 + 76.9

Net Increase or Decrease - 46.7 - 42.7 + 3.9

Cash and Cash Equivalent at the beginning 191.2 240.9- 41.1 **

Cash and Cash Equivalent at the end 144.6 199.7

Depreciation and Amortization 101.2 97.4 - 3.8

Capital Expenditures 137.3 220.3 + 82.9

17

Difference1-3Q/FY141-3Q/FY13Consolidated Statements of Cash Flow

(¥Billion)* EBITDA：Op. Income＋Depreciation and Amortization** Includes effect on cash and cash equivalents with change of scope of consolidation.

©ANAHD2015


Air Transportation 1,033.8 1,124.2 + 90.3 382.0 + 30.2

Airline Related 142.2 170.5 + 28.2 61.5 + 12.3

Travel Services 133.5 130.6 - 2.8 41.6 - 1.1

Trade and Retail 82.6 94.9 + 12.2 33.6 + 4.7

Total for Reporting Segments 1,392.3 1,520.4 + 128.0 518.9 + 46.2

Others 21.7 23.5 + 1.7 7.9 + 0.4

Adjustment - 224.8 - 246.7 - 21.9 - 84.4 - 10.4

Total (Consolidated) 1,189.3 1,297.2 + 107.9 442.4 + 36.3

Air Transportation 62.6 78.2 + 15.6 26.4 + 2.9

Airline Related 6.2 9.4 + 3.2 4.2 + 1.7

Travel Services 4.2 4.4 + 0.2 1.6 + 0.2

Trade and Retail 2.9 3.2 + 0.3 1.4 + 0.3

Total for Reporting Segments 75.9 95.4 + 19.4 33.7 + 5.3

Others 0.9 1.3 + 0.4 0.5 + 0.1

Adjustment - 7.8 - 7.4 + 0.3 - 2.9 + 0.1

Total (Consolidated) 69.0 89.2 + 20.2 31.3 + 5.6

Revenues

OperatingIncome

18

Difference1-3Q/FY141-3Q/FY13 Difference3Q/FY14

(¥Billion)Accounting change is applied as shown on footnote of P.15.

Results by Segment

©ANAHD2015

Air Transportation Business

Domestic Passengers 518.2 523.2 + 5.0 177.4 + 3.5

International Passengers 297.4 354.1 + 56.7 118.3 + 17.4

Cargo and Mail 108.5 126.2 + 17.6 45.8 + 5.8

Others 109.6 120.6 + 10.9 40.4 + 3.3

Total 1,033.8 1,124.2 + 90.3 382.0 + 30.2

Fuel and Fuel Tax 251.4 285.4 + 33.9 98.1 + 12.6

Landing and Navigation Fees 81.8 86.0 + 4.1 28.7 + 1.5

Aircraft Leasing Fees 58.8 68.0 + 9.1 23.3 + 3.3

Depreciation and Amortization 96.2 93.2 - 3.0 31.1 - 1.4

Aircraft Maintenance 63.8 64.4 + 0.6 22.6 + 0.2

Personnel 121.3 122.4 + 1.1 40.0 + 2.0

Sales Commission and Promotion 58.1 74.4 + 16.3 25.2 + 4.7

Contracts 117.8 127.2 + 9.3 42.6 + 2.8

Others 121.6 124.6 + 3.0 43.7 + 1.1

Total 971.2 1,046.0 + 74.7 355.6 + 27.2

OperatingRevenues

Operating Expenses

Operating Income 62.6 78.2 + 15.6 26.4 + 2.9

EBITDA* 160.8 171.4 + 10.6 57.5 + 1.5

EBITDA Margin (%) 15.6 15.3 - 0.3 15.1 - 0.9

19

Difference1-3Q/FY141-3Q/FY13 Difference3Q/FY14Operating Revenues and Expenses

Op. Income

* EBITDA: Op. Income + Depreciation and Amortization, includes inactive fixed asset depreciation expensesAccounting change is applied as shown on footnote of P.15.

©ANAHD2015

+5.0

+17.6

+10.9

+25.4

+21.3- 5.9

Progress of Cost Restructuring Full Year Target 1-3Q Results vs. Target

Productivity Improvement etc. 11.0 08.0 73%Appropriate Investment 05.0 03.5 70%

Appropriate Sales 03.5 02.5 71%Operational Innovation etc. 14.5 10.0 69%

Total 34.0 24.0 71%

Increase in Increase in RevenuesRevenues+90.3+90.3

Increase in Increase in ExpensesExpenses+74.7+74.7

20


62.678.2

+56.7 +33.9

Increase in ProfitIncrease in Profit+15.6+15.6

Changes in Operating Income

Accounting change is applied as shown on footnote of P.15.

(¥Billion)

FY13 1FY13 1--3Q3QOp. IncomeOp. Income

Domestic Passenger

InternationalPassenger

Cargo & MailOther

Revenues

・Revenue from contracted Maintenance and handling・Mileage/Card・LCC Business, etc

OtherExpenses

･Depreciation except Aircraft･Maintenance, etc.

Sales-Linked

Operation-Linked

･Commission・Advertisement･In-flight service･Ground Handling, etc.

･Landing/Navigation Fees･Depreciation ･Personnel･Contracts, etc.

Fuel & Fuel Tax

FY14 FY14 11--3Q3QOp. IncomeOp. Income

©ANAHD2015


Available Seat Km (million) 46,423 45,638 - 1.7 14,990 - 1.9

Revenue Passenger Km (million) 28,809 29,264 + 1.6 9,970 + 1.1

Passengers (thousands) 32,566 32,881 + 1.0 11,205 + 0.1

Load Factor (%) 62.1 64.1 + 2.1pts* 66.5 + 2.0pts*

Passenger Revenues (¥Billion) 518.2 523.2 + 1.0 177.4 + 2.1

Unit Revenue (¥/ASK) 11.2 11.5 + 2.7 11.8 + 4.0

Yield (¥/RPK) 18.0 17.9 - 0.6 17.8 + 0.9

Unit Price (¥/Passenger) 15,912 15,914 + 0.0 15,833 + 2.0

21

% Y/Y1-3Q/FY141-3Q/FY13 % Y/Y3Q/FY14Domestic Passenger Operations

* Difference（Not including Vanilla Air/previously AirAsia Japan）

©ANAHD2015


22

Revenue increased by strategic pricing management under effective optimization on demand/supply

Captured demand steadily including positive effect of promotional fare

518.2523.2

+5.0

FY13 1FY13 1--3Q3Q FY14 1FY14 1--3Q3Q

Main Passenger Factors Main Unit Price Factors

+2.0- 1.0+4.0

(0.0)(+0.5)(+0.0)

+6.0-1.0-5.0

(+3.0)(-0.0)(+0.0)

+0.0

（Left axis）

Trends in Domestic Passenger Operations （Not including Vanilla Air/previously AirAsia Japan）

FY14 1-3Q Revenue Change Factors Trends of passengers by Segment and Unit Price

（Figures in parentheses represent results for 3Q only）

(¥Billion)

B787 resumption of operationCompetition with other airlinesDemand stimulation measures, etc

Fare raiseCompetition with other airlinesPassenger class mix Changes, etc

Passenger YoY (%)Unit Price（Index：FY12 1Q=100)

【3Q Passengers by Segment（YoY）】Individual ： - 1.9%Promotion ： + 9.6%Travel ： - 0.8%

Unit PriceTotalIndividualPromotional FarePackage/Travel

（Right axis）

©ANAHD2015


23

% Y/Y1-3Q/FY141-3Q/FY13 % Y/Y3Q/FY14

Available Seat Km (million) 30,908 37,218 + 20.4 12,500 + 16.5

Revenue Passenger Km (million) 22,867 26,829 + 17.3 8,803 + 13.2

Passengers (thousands) 4,757 5,361 + 12.7 1,770 + 11.5

Load Factor (%) 74.0 72.1 - 1.9pts* 70.4 - 2.1pts*

Passenger Revenues (¥Billion) 297.4 354.1 + 19.1 118.3 + 17.3

Unit Revenue (¥/ASK) 9.6 9.5 - 1.1 9.5 + 0.7

Yield (¥/RPK) 13.0 13.2 + 1.5 13.4 + 3.7

Unit Price (¥/Passenger) 62,521 66,054 + 5.7 66,862 + 5.2

International Passenger Operations

* Difference（Not including Vanilla Air/previously AirAsia Japan）

©ANAHD2015


24

Captured demand steadily while managing yield levelSignificant revenue increase inline with ASK expansion

297.4

354.1

+18.5

+38.0

FY13 1FY13 1--3Q3Q FY14 1FY14 1--3Q3Q

Main Passenger Factors Main Unit Price Factors

+22.5+2.0+9.0+4.5

(+6.0)(+0.0)(+3.0)(+2.5)

+9.5-4.0

+6.5+6.5

(+2.0)(-3.5)

(+3.5)(+4.0)

Trends in International Passenger Operations （Not including Vanilla Air/previously AirAsia Japan）

FY14 1-3Q Revenue Change Factors Trends of ASK, RPK and Yield

（Figures in parentheses represent results for 3Q only） (¥Billion)

ASK increaseDemand trendFSCMarketing measures, etc.

Yield managementPassenger class /

route mix changesForeign exchangeFSC

Index：FY12 1Q=100

ASK RPK Yield

©ANAHD2015


25

FY12 FY13 FY141Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q




Trends in International Passenger Operations

Trends in ASK,RPK,L/F by Destination

：ASKLeft Axis（Index：FY12 1Q=100） Right Axis（Unit：%）：RPK ：L/F

North America Europe

Asia China

（Not including Vanilla Air/previously AirAsia Japan）

©ANAHD2015

Intentionally Blank

26

©ANAHD2015


DomesticCargo

Available Ton Km (million) 1,503 1,433 - 4.7 469 - 5.5

Revenue Ton Km (million) 357 369 + 3.5 133 - 2.4

Revenue Ton (thousand tons) 361 369 + 2.3 133 - 3.3


Cargo Revenues(¥Billion) 24.3 25.1 + 3.4 9.0 - 0.4

Unit Revenue (¥/ATK) 16.2 17.6 + 8.5 19.2 + 5.4

Unit Price (¥/kg) 67 68 + 1.0 68 + 3.0

27

DomesticFreighter【IncludedAbove】

Available Ton Km (million) 22 －－－－

Revenue Ton Km (million) 7 －－－－

Revenue Ton (thousand tons) 7 －－－－

Load Factor (%) 32.2 －－－－

Cargo Revenues(¥Billion) 0.9 －－－－

Unit Revenue (¥/ATK) 42.6 －－－－

Unit Price (¥/kg) 126 －－－－

% Y/Y1-3Q/FY141-3Q/FY13 % Y/Y3Q/FY14Domestic Cargo Operations

* Difference

©ANAHD2015


29

InternationalCargo

Available Ton Km (million) 3,373 4,135 + 22.6 1,393 + 15.8

Revenue Ton Km (million) 2,165 2,731 + 26.1 929 + 16.3

Revenue Ton (thousand tons) 528 646 + 22.2 217 + 12.0


Cargo Revenues (¥Billion) 77.6 93.8 + 20.9 34.0 + 19.3

Unit Revenue (¥/ATK) 23.0 22.7 - 1.4 24.5 + 3.1

Unit Price (¥/kg) 147 145 - 1.1 156 + 6.6

InternationalFreighter

【IncludedAbove】

Available Ton Km (million) 727 931 + 28.1 312 + 17.8

Revenue Ton Km (million) 446 577 + 29.4 190 + 15.2

Revenue Ton (thousand tons) 242 290 + 19.9 96 + 8.7

Load Factor (%) 61.3 62.0 + 0.6pts* 60.9 - 1.4pts*

Cargo Revenues (¥Billion) 28.9 35.2 + 21.7 12.3 + 18.6

Unit Revenue (¥/ATK) 39.8 37.8 - 4.9 39.6 + 0.7

Unit Price (¥/kg) 119 121 + 1.5 129 + 9.1

% Y/Y1-3Q/FY141-3Q/FY13 % Y/Y3Q/FY14

* Difference

International Cargo Operations

©ANAHD2015


(*) Japan Aircargo Forwarders Association

30

To capture growing demand led to significant revenue increase

Improved in unit price and enhanced capture of trilateral cargo traffic

77.6

93.8

- 2.5 +18.5

FY13 1FY13 1--3Q3Q FY14 1FY14 1--3Q3Q

Main Weight Factors Main Unit Price Factors

+16.0+ 2.5

(+4.0)(+0.5)

-0.5+3.5-5.5

(-0.5)(+2.0)(-0.5)

Trends in International Cargo Operations

FY14 1-3Q Revenue Change Factors Trends of Traffic Results and Unit Price

ATK increaseMarketing measures, etc

FSCForeign exchangeSales rate

(¥Billion)Cargo Only. Not including postal mail.（Figures in parentheses represent

results for 3Q only）

（YoY：%）

ANA Unit PriceANA Total Cargo Results (including trilateral logistics)

ANA Export/Import

Japan Export/Import (Reference*)

©ANAHD2015


31

Fleet Fleet PlanPlanAircraft in service:6 aircraft（as of end of Dec, 2014)

End of FY14：8 aircraft

Plan to move from Terminal2 to Terminal3 (new LCC Terminal) at Narita airport from Apr. 8, 2015.

Available Seat Km (million) 936 1,571 + 67.9 473 + 381.7

Revenue Passenger Km (million) 627 1,208 + 92.5 388 + 431.5

Passengers (thousands) 536 821 + 53.0 251 + 383.4

Load Factor (%) 67.1 76.9 + 9.8** 82.1 + 7.7**

% Y/Y1-3Q/FY141-3Q/FY13* % Y/Y3Q/FY14

Route Network（As of end of Dec. 2014）

LCC Operations

Domestic and International Passenger Operations in Total

* Include results of previous AirAsia Japan.**Difference

©ANAHD2015

Other Segments excluding Air Transportation Business

Airline Related Travel Services

1-3Q/FY13 1-3Q/FY14 Difference 1-3Q/FY13 1-3Q/FY14 Difference

Revenues 142.2 170.5 + 28.2 133.5 130.6 - 2.8

Op. Income 6.2 9.4 + 3.2 4.2 4.4 + 0.2

Depreciation and Amortization 2.3 3.3 + 1.0 0.0 0.0 - 0.0

EBITDA* 8.5 12.8 + 4.3 4.2 4.4 + 0.2

EBITDA Margin (%) 6.0 7.5 + 1.5pts 3.2 3.4 + 0.2pts

32

Trade and Retail Others

1-3Q/FY13 1-3Q/FY14 Difference 1-3Q/FY13 1-3Q/FY14 Difference

Revenues 82.6 94.9 + 12.2 21.7 23.5 + 1.7

Op. Income 2.9 3.2 + 0.3 0.9 1.3 + 0.4

Depreciation and Amortization 0.5 0.7 + 0.1 0.1 0.1 - 0.0

EBITDA* 3.4 3.9 + 0.5 1.0 1.4 + 0.4

EBITDA Margin (%) 4.2 4.2 - 0.0pts 4.9 6.2 + 1.4pts

Results by Segment

(¥Billion)

(¥Billion)

* EBITDA ：Op. Income + Depreciation and Amortization

©ANAHD2015

Status of Fuel and Currency Hedging

90%

55%

30%

10%

0%

20%

40%

60%

80%

100%

75% 80%

40%

10%

0%

20%

40%

60%

80%

100%

FY14 FY15 FY16 FY17

FY14 FY15 FY16 FY17

33

FY2014 Dubai Crude Oil (US$/bbl) Kerosene (US$/bbl)

Earnings Forecast Assumptions 107 125

1-3Q Results 94.1 109.6

FY2014 ¥/US$

Earnings Forecast Assumptions 105

1-3Q Results 106.7

Fuel Hedge

Currency Hedge

（Not including hedge impact）

Hedge Ratio（As of end of Dec, 2014）

Hedge Ratio（As of end of Dec, 2014）

Fuel CostUS$1 change

per barrel

Non hedge Impact ofOil Price

¥ 2.8BnFY14(E)

Fuel CostUS$1 change

per barrel

Non hedge Impact ofOil Price

¥ 2.8BnFY14(E)

Expenses inForeign Currency( Excluding Fuel )

Revenues inForeign

Currency(Int’l Passenger)

(Int’l Cargo)

Revenues inForeign

Currency(Int’l Passenger)

(Int’l Cargo)

ScopeScopeofof

HedgeHedge

Expensesin Foreign Currency

(Fuel)

Expensesin Foreign Currency

(Fuel)

©ANAHD2015 34

Provisional Calculation for Change Factors in Profit Plan

FY2015 : +¥0.0 to +¥5.0Bn

+15.0 to +17.0

- 5.0-23.0 to -20.0

+30.0 to +33.0Revision of cost reduction amount

(rescheduled to FY16)

・Fuel expense decrease (Positive)・Fuel surcharge revenue decrease (Negative)

Crude Oil Price Change Factors

FY2016 : +¥5.0 to +¥10.0Bn

-7.0 to -5.0

Assumption (US$/bbl)Dubai Crude Oil：107→67

Singapore Kerosene：125→85

Assumption (¥/US$)105 →120

Assumption (US$/bbl)Dubai Crude Oil：112→77

Singapore Kerosene：130→95

Assumption (¥/US$)105 →120

(¥Billion)

・Increase of revenues in foreign currencies on int’l business (Positive)・Increase of fuel expenses etc. in foreign currencies (Negative)

Exchange Rate Factors (Yen equivalent)

©ANAHD2015

Supplemental Reference

1-3Q/FY14Composition Difference

North America 32.7 + 1.0 31.8 - 1.1

Europe 21.0 + 0.9 20.0 + 1.4

China 14.8 - 1.2 14.9 - 0.4

Asia 27.5 - 0.4 29.4 + 0.1

Resort 3.9 - 0.3 3.9 - 0.1

North America 35.1 - 0.1 35.2 - 1.6

Europe 20.4 + 1.9 20.4 + 3.5

China 11.2 - 1.9 10.9 - 1.9

Asia 29.4 + 0.8 29.6 + 0.6

Resort 4.0 - 0.8 3.9 - 0.7

North America 36.0 + 0.6 34.7 - 1.7

Europe 19.9 + 0.9 20.0 + 2.1

China 9.7 - 0.8 9.2 - 0.4

Asia 29.5 - 0.0 31.1 + 0.5

Resort 4.8 - 0.7 5.0 - 0.4

Revenue

ASK

RPK

36

3Q/FY14Composition Difference

Composition of International Passenger Resultsby Destination

（Not including Vanilla Air/previously AirAsia Japan）

©ANAHD2015


37

1-3Q/FY14Composition Difference

North America 22.8 + 1.1 24.5 + 2.0

Europe 14.5 + 0.2 14.3 + 0.6

China 34.2 - 2.9 33.9 - 3.2

Asia 21.8 + 1.9 20.8 + 1.0

Others 6.7 - 0.3 6.4 - 0.4

North America 35.0 - 3.0 34.9 - 4.0

Europe 20.8 + 0.7 20.7 + 3.0

China 16.4 - 1.1 16.5 - 1.1

Asia 23.9 + 3.6 23.5 + 2.4

Others 4.0 - 0.2 4.3 - 0.2

North America 38.7 - 0.5 39.1 - 1.5

Europe 23.3 + 0.5 23.4 + 2.3

China 13.7 - 2.3 13.7 - 2.3

Asia 20.4 + 2.5 19.9 + 1.9

Others 4.0 - 0.3 3.9 - 0.4

Revenue

ATK

RTK

3Q/FY14Composition Difference

Composition of International Cargo Resultsby Destination

©ANAHD2015


Mar 31, 2014

Boeing 747-400 (Domestic) 1 0 - 1 0 0

Boeing 777-300ER 19 19 － 16 3

Boeing 777-300 7 7 － 7 0

Boeing 777-200ER 12 12 － 6 6

Boeing 777-200 16 16 － 14 2

Boeing 787-9 0 2 + 2 2 0

Boeing 787-8 27 32 + 5 30 2

Boeing 767-300ER 26 26 － 9 17

Boeing 767-300 21 19 - 2 19 0

Boeing 767-300F 2 3 + 1 0 3

Boeing 767-300BCF 7 7 － 7 0

Airbus A320-200 19 18 - 1 12 6

Boeing 737-800 24 30 + 6 24 6

Boeing 737-700ER 2 2 － 2 0

Boeing 737-700 11 10 - 1 7 3

Boeing 737-500 15 17 + 2 17 0

Bombardier DHC-8-400 (Q400) 21 21 － 14 7

Bombardier DHC-8-300 (Q300) 1 0 - 1 0 0

Total 231 241 + 10 186 55

Dec 31, 2014 OwnedChange Leased

Wide-Body

Mid-Body

Narrow-Body

Regional

38

Aircraft in Service

Including aircraft of A320-200 operated by Vanilla Air (6 as of end of FY14 3Q, 5 as of end of FY13).Excluding leased aircraft outside group (12 as of end of FY14 3Q, 14 as of end of FY13).

©ANAHD2015 39

ANA Group Corporate Philosophy

Mission Statement

Built on a foundation of security and trust,“the wings within ourselves”

help to fulfill the hopes and dreams of an interconnected world.

ANA Group Safety Principles

Safety is our promise to the public andis the foundation of our business

Safety is assured by an integratedmanagement system and mutual respect.

Safety is enhanced through individualperformance and dedication

Management Vision

It is our goal to bethe world’s leading airline group

in customer satisfaction and value creation.

©ANAHD2015

Investor Relations, ANA HOLDINGS INC.Phone +81-(0)3-6735-1030 E-Mail: [email protected]

40

Thank you.

This material is available on our website.

http://www.anahd.co.jp/en

Investor Relations IR Library Presentations

Cautionary StatementForward-Looking Statements. This material contains forward-looking statements based on

ANA HOLDINGS INC.’s current plans, estimates, strategies, assumptions and beliefs. Thesestatements represent the judgments and hypotheses of the Company’s management based oncurrently available information. Air transportation, the Company’s core business, involvesgovernment-mandated costs that are beyond the Company’s control, such as airport utilizationfees and Fuel taxes. In additions, conditions in the markets served by the Company are subjectto significant fluctuations.

It is possible that these conditions will change dramatically due to a number of factors, suchas trends in the economic environment, aviation fuel tax, technologies, demand, competition, foreign exchange rate fluctuations, and others. Due to these risks and uncertainties, it is possiblethat the Company’s future performance will differ significantly from the contents of this material.

Accordingly, there is no assurance that the forward-looking statements in this material willprove to be accurate.

ana holdings inc. · -air transportation as the group’s core business, continues to expand...

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